E-mini S&P 500 Index (ES) Futures Technical Analysis – July 18, 2019 Forecast

September E-mini S&P 500 Index futures are trading slightly lower shortly after the cash market opening. The market is attempting to claw back from early session weakness. Volume and volatility are down for a fifth trading session with most of the major players on the sidelines during the current earnings season and ahead of policy decisions by the European Central Bank and U.S. Federal Reserve.

At 14:03 GMT, September E-mini S&P 500 Index futures are trading 2982.50, down 2.50 or -0.08%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The main trend changes to down on a trade through 2963.50. A trade through 3023.50 will signal a resumption of the uptrend.

The short-term range is 2963.50 to 3023.50. Its retracement zone at 2986.50 to 2993.50 is resistance.

The intermediate range is 2914.50 to 3023.50. Its retracement zone at 2969.00 to 2956.00 is support. Since the main trend is up, buyers could show up on a test of this area.

Daily Technical Forecast

Based on the early price action and the current price at 2982.50, the direction of the S&P 500 Index the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 2986.50.

Bullish Scenario

Crossing to the strong side of 2986.50 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the 50% level at 2993.50, followed by a downtrending Gann angle at 2999.50.

Bearish Scenario

A sustained move under 2986.50 will signal the presence of sellers. This could lead to a retest of the uptrending Gann angle at 2974.50. If this fails then the selling is likely to extend into the intermediate 50% level at 2969.00, followed by a longer-term uptrending Gann angle at 2967.50.

The angle at 2967.50 is a potential trigger point for an acceleration to the downside with 2963.50 and 2956.00 the next likely downside targets.

Overview

Basically the index is trading inside a range formed by a Fib level at 2986.50 and an uptrending Gann angle at 2974.50. Due to the low volume, be careful buying strength and selling weakness through these levels.